Johannesburg – Business and consumer confidence is set to rebound in the fourth quarter as the country eased lockdown restrictions on Saturday, although the third quarter was expected to record sluggish growth.
Yesterday economists said that business and consumers would be critical in pulling the country out of the six months of lacklustre growth fuelled by restrictions imposed by the government to contain the spread of the Covid-19 pandemic, but has warned that the recovery would be lower than 2019.
According to chief economist at Alexander Forbes, Isaah Mhlanga, business confidence would depend on the resolution of the underlying healthcare crisis and the implementation of growth-boosting economic reforms, the latter which remained too slow.
Mhlanga said the recovery would likely depend on household incomes and consumers’ ability to spend more.
“That said, the further opening up of the economy will provide relief to sectors that have been impacted,” Mhlanga said. “The corporate sector will largely remain on building resilience than efficiency, with implications on how they deal with cash flows.”